Article

Why investors are paying greater attention to the UK living market

June 28, 2019

As new styles of purpose-built accommodation become a growing part of the UK’s housing market, they’re offering investors new opportunities for reliable, longer-term income.

Increasing levels of urbanisation, ageing populations, rising student numbers and smaller households are leading more people to seek high-quality, professionally managed properties to rent.

The proportion of over-65s is predicted to rise to 20.7 percent of the UK population by 2027 and traditional senior living models are evolving to keep pace. Meanwhile the UK’s young professionals are warming to models like co-living in its big cities.

 

 

This growing demand is driving investor interest in the UK’s Living sector, which encompasses student housing, co-living, multifamily and healthcare real estate.

“We’re talking about purpose-built housing for different demographic groups,” says Simon Scott, JLL UK’s lead director, capital markets.

Over the next five to ten years he expects investors to increasingly move into living funds as the sector grows and develops its housing solutions.

It’s already showing promising signs: the UK market received record inflows into its Living sector with an unprecedented £3.6 billion invested in the first quarter of 2019. Across Europe, allocations into this sector are set to grow by 30 percent this year, according to JLL.

Watch Simon Scott in the video above to find out more about how the Living sector is developing in the UK and what it means for investors.